A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Month: September 2019

Tips for driving crossword sales in the newsagency

The crossword segment of magazines continues to perform well in retail newsagencies. I see plenty of businesses reporting growth and those reporting decline report a lower decline for crosswords.

Crosswords respond well to in-store engagement and promotion. For a small investment of time, you can expect a lift in sales of crossword titles. Here is my current list of top engagement opportunities for a retailer with crosswords:

  1. If you have a table where shoppers can sit for a while, open a crossword and placing some pens nearby so people can engage and complete a crossword together.
  2. If you don’t have a table, set one up as this is an easy way to boost sales.
  3. Move the entire crossword segment next to weeklies. Every time we have seen this done there is a terrific sales jump.
  4. Also place crossword titles with their parent brand: Better Homes and Gardens and Australian Women’s Weekly, for example. This could be done as co-location – in addition to regular placement. I say also as this should be a secondary placement.
  5. Call out a crossword title as a staff member fave and note why with a small sign in front. This type of personal recommendation works well in book retailing.
  6. In front of top selling weeklies, place a plastic or acrylic pocket with A5 titles from the same brand as both titles are bought by the same shopper.
  7. Pitch a crossword or two at the counter.
  8. Consider a crossword themed window.
  9. Consider a crossword lovers event. It could be a simple afternoon team with the idea of them meeting each other and sharing stories. Your focus could be to thank them for their love of crosswords.
  10. Trial placing your most popular two crosswords next to daily newspapers. Count how many you place so that you can measure the success.
  11. Run a loyalty program for magazines. Crossword shoppers will appreciate this and drive more whole of business shopping as a result.
  12. Shine a light on your range on social media – let locals know that your business is the local destination from crosswords.

I get that some reading this will say we only get 25%, why bother. I agree the margin is disrespectful. However, crossword shoppers purchase out of habit. That makes them valuable to us beyond the crossword purchase.

6 likes
crosswords

Tips for leveraging big lottery jackpots in retail

Big lottery jackpots can be a challenge in terms of shop floor management as well as that they can suck cash out of the local economy that might otherwise have been useful for spending of products in your shop. Big lottery jackpots are also an opportunity to leverage, bringing in people you have not seen before. The key is what you do with the new traffic.

Here are some tips for shop floor management:

  1. Have a clearly understood queuing system.
  2. Have someone on the floor triaging shoppers. For example, someone may want a simple quick pick. You might have these ready for immediate fast purchase.
  3. Ask early. Immediately you know a bog jackpot is happening, list $70M, $80M or $100M or more, immediately start pitching to every customer. It’s better you win the purchase early in the week than the lottery outlet they are closest later in the week.
  4. Play good music.
  5. On the heaviest day, invite a local busker in to entertain, have kids activities on the shop floor incite a local charity to run a sausage sizzle out the front of the shop. The goal here is to add to the event feel and support the jackpot.

Here are some ideas for leveraging big lottery jackpot traffic:

  1. Get everyone on board. Everyone working in the shop needs to be on the same page about the jackpot, leveraging the opportunity at the counter, talking to customers, sharing dreams, selling.
  2. Make it easy. Preprint tickets ready for people to purchase as a lucky dip. All the same price. Something they could buy with change.
  3. Respect other shoppers. Make sure that anyone wanting anything else in your business can easily shop with you. Manage any queue well. Talk about this on Facebook, that even though there is a jackpot , you are making shopping easy, fast and helpful. It is vital that people see your business as more than a lottery store.
  4. Reward early shoppers. Bring purchases forward by offering those who buy in, say, the first four days of an on-sale. With most impulse purchases for a large jackpot being in the last two or three days and these often made while people are out and about, try and ‘steal’ that business from other retailers. Here are some Earlybird jackpot ideas:
    1. Each purchase of a ticket in the jackpot over and amount you choose gets a free $1 scratchie – you could win $XXX.
    2. Each purchase today goes in the draw for a FREE $50 bonus ticket. Get them to write their name and number on a small form. Print the ticket to show it’s real.
    3. Each purchase in the jackpot between now and XXX (three days before the draw) goes in the running to win a System X (choose a size based on your situation).
  5. Map the route. Sketch out your floor layout and mark the route most jackpot customers will travel. This shows you the areas of your shop where you need to focus, where to place impulse purchase lines. These impulse purchase lines should be easily understood, priced for easy purchase, easily carried and relevant.
  6. On social media. In the week before the jackpot, while you may be tempted to promote it, talk about other products that help define your business because beyond the jackpot, this will matter.
  7. Make them walk through it. Create a fresh environment of products through which lottery shoppers to walk. This is where you pitch what you do that is different. It is crucial shoppers walking through the front part of the shop feel and see the change.
  8. Pitch at the door. As they enter and, crucially, as they leave. Show them products they would not expect you to have in the shop. Make it easy for people to buy these products.
  9. Pitch at the counter. Stand where your lottery customers will stand. Look at what they will see. make sure your messages are clean, simple and engaging. Everything they can see should be about getting them to spend money with you.
  10. Care for your team. The week of a large jackpot places extra demands on everyone. Help your team members through this with extra attention on breaks, coffee, water, snacks and other things to demonstrate appreciation for the extra demands on them.
  11. Have fun.

The value of any lottery jackpot to your business beyond lottery commission depends on what you do.

Footnote: this advice is part of the extensive newsXpress knowledgeable accessible by newsXpress members. It is a deep well of advice and encouragement for building more valuable businesses.

11 likes
Lotteries

Excellent retail advice for Myer relevant to our channel

If you can grab 15 minutes today, please watch the business report from the ABC last Thursday night abut Myer. It is interesting and sobering and relevant to our retail businesses.

What the experts tell Myer they need:

  • dialled up in-store theatre,
  • investment in good front line people,
  • more comparative shopping (price),
  • understand that all people don’t want to shop in a shop.

All retailers need these things, and more. I found the report valuable and fascinating.

Note this: 10% of revenue for Myer now comes from online. 10%

5 likes
Newsagency management

Small business finance advice

The Australian Small Business and Family Enterprise Ombudsman has published some excellent tools that will be helpful to small business retailers in the area of funding.

This type if advice is critical in this era of business owners engaging with FinTech companies that offer high cost easy to access financing without the need for security. These too good to be true finance offers usually are, actually, too good to be true. I have seen retailers pay too much for stop gap funding when, in reality, they should have looked at entering formal administration. All the funding did was add to their costs.

The ASBFEO advice is timely and useful. I urge newsagents to read it so they are aware of the advice even if it is not relevant today.

Click here to access FitsME – Essential guide. Click here to access the Funding Guide. The advice is this document is excellent. My only complaint is that the documents are sponsored by a finance business.

6 likes
Newsagency management

New format for more regional News Corp. newspapers

News Corp  earlier this week announced format changes for these titles: CQ News, Gympie Times, Fraser Coast Chronicle, Central & North Burnett Times and the South Burnett Times. This is on the back of changes in some other regions.

Dear Retailer,

Each issue of CQ News is read by an average of 7,000 Central Queensland residents,* connecting them with essential local news, sport and opinion that matters most to their busy lives.

To ensure we continue to deliver the deep connection we share with our readers and advertisers, while maintaining global best practice and ensure long-term sustainability, we are evolving.

What is Happening? 

CQ News will adopt a smaller, friendlier and contemporary 350mm tabloid format. This newspaper will continue to be printed on the newsprint loved by our readers.

When do these changes happen?

CQ News will move to the new 350mm tabloid format from publishing date Friday 13 September, 2019. The last publishing date in the current format will be Friday 6 September 2019.

What does this mean for our retailers?

An in-store point of sale suite will be created to assist in notifying and informing your customers of the upcoming format changes prior to the official launch.

The new format change will provide a more compact user friendly experience for your loyal customers to enjoy on a daily basis.

What does this mean for our readers?

We will let our readers know about the new format in paper and online in the lead up to the changes. We will also launch a brand marketing campaign to inform and inspire Central Queensland locals as we launch the new-look paper.

Where can I find more information? 

For more information, please see our FAQs attached.

While the shape of CQ News is changing, our commitment to the Central Queensland community is not. Our role in providing essential local news, sport and opinion to our readers remains as vital as it has always been.

We thank you for your support of our ongoing evolution to ensure our newspapers remain the trusted, proud voice for the Central Queensland community in the years ahead.

We look forward to taking this latest step to keep delivering for our readers and advertisers with you.

Regards,

News Corp Australia

Click here to see one off the FAQ documents issued.

This is a move that has been in planning for a while. I don’t see anything concerning in it. If anything it will freshen interest in the print product and, possibly, offer retailers more options for placement.

5 likes
Newspapers

Free e-commerce workshops for small business retailers

A free workshop for small business retailers: How to find new customers by selling online direct from POS software for your specific type of business using Shopify and Magento.

This is a free workshop I am running for my POS software company that may interest newsagents. In the workshops I will provide context in terms of how retail, physical and online, is changing. I’ll share trend insights from overseas that have small business implications. I’ll look at being prepared for what’s next.

You’d be most welcome at this free workshop where we will explore Shopify and Magento direct connected POS software for specialty retailers: jewellers, garden centres, produce, toy, firearms, fishing, outdoors, newsagents, pet, gift, book, bike and adult.

At the interactive and engaging workshops we will focus on new online insights for 2020 and beyond that are relevant to indie small business retailers.

  1. Hear from current case studies what other indie retailers are doing.
  2. Find out how to use online to drive in-store shopping.
  3. Learn how click and collect actually works.
  4. Find out about the different buy now pay later options for online sales.
  5. See how stock data including images flow easily from the POS to online.

Each workshop will be live and interactive and relevant to your type of business. It could save you thousands in web developer fees. This will not be a sales pitch. We will share what we know having done this work ourselves for the retail businesses we own in the homewares, pop culture, collectible, plush, gift and games segments of retail.

We live everyday the challenges of pricing, marketing, shipping and more and we will share out learnings.

We will cover hot topics including: SEO, shipping options, free shipping, the role of social in online sales, returns, bundles, branding and a plan b for your web strategy.

Click on your preferred city below to book. Each workshop (except for online) will be in an easy to get to capital city location.

  1. Sydney. Sept. 30. 10am.
  2. Adelaide. October 1. 10am.
  3. Perth. October 2. 10:30am.
  4. Hobart. October 3. 11am.
  5. Melbourne. October 4. 10am.
  6. Auckland. October 7. 10am.
  7. Brisbane. October 8. 10am.
  8. Canberra. October 9. 10am.
  9. Online. October 10. 10am. AEST.
  10. Online. October 10. 2pm. AEST.
  11. Wellington. October 14. 10am.
  12. Christchurch. Oct. 15. 10am.

We are local. Tower Systems serves 3,500+ specialty businesses – with POS software and websites. We make what we sell. We use it ourselves too, in our own retail and online businesses.

With these workshops and all we do, goal is to help you enjoy a more successful and valuable business.

9 likes
newsagency of the future

Landlords continue to change traditional newsagency businesses

Every week I hear from a different landlord (or two, or three)pitching a tenancy, or tenancies, if their centre that would be ideal for a traditional newsagency. When I ask what they think a traditional newsagency sells they almost always say: papers, magazines, lotteries, cigarettes and lollies. Pushed, they will add cards and phone recharge.

Some say they would not permit a newsagency to sell gifts while others say yes to gifts but no to homewares or toys.

Landlords of shopping centres are a problem for our channel. They are living in the dark ages.

These shopping centre landlords do not want newsagencies of 2019 and beyond. No, they want convenience stores offering categories that we either have left behind or managed to a small footprint as we chase new traffic and higher overall GP%. Which is okay. There is a place for those businesses, the businesses that offer papers, magazines, lotteries, cigarettes and lollies as their core.

So, in addition to Australia having more retail space per capital than most other countries and our retail space priced higher than most others, we also have to content with landlords who guide retailers to setup businesses that are focussed on the past more than on the future.

They get people agreeing to this. I heard from someone last week who had just signed a lease for a new 30-shop centre being built in regional Australia, in an economically affluent area. They had agreed to a 150 sq m newsagency that would sell papers, magazines, lotteries, cigarettes and lollies. Oh, and cards and small gifts (under $20).  This would be their first retail business and they wanted help to create it. They thought they were on a winner, based on projections from the landlord.

I suggested they get the projections in writing and ask the landlord for people to speak to, to guide the creation of the business. The landlord refused, saying the projections were guidance only and not  to be relied on. In talking abut how they planned full the shop they figured it as 33% magazines, 20% cards, 25% lotteries and the rest in convenience products and management.

I asked they has created a cashflow projection model for the business. They had not. They referred back to the landlord projection on  how good a newsagency would be.

And landlords wonder why some traditional newsagency businesses go broke.

8 likes
Ethics

AFL Footy record a profitable business

Mediaweek yesterday had the story about the results of Pacific Star Network, the sports radio and media business with Craig Hutchison as CEO.

Pacific Star Network reports Crocmedia financials for 2018-19

FY19 revenue of $67.0 million was up 140% and underlying EBITDA of $9.0 million (guidance: $8.75-9.25 million) was up 208% on the prior corresponding period (pcp), respectively.

In the story is a report abut the purchase of the AFL Record business from the AFL.

In July 2018, PNW’s wholly owned subsidiary Crocmedia signed an agreement with the AFL to acquire the AFL Publishing business. The business is responsible for numerous football related publications, including the iconic AFL Record publication, which has been the official match program for more than 100 years.

The AFL Publications business had a purchase price of $8.1 million comprising $5.850 million cash less working capital adjustments of $0.244 million and $2.250 million prepaid advertising to be retained by the AFL. The AFL Record performance was in line with expectations, with revenue of $6.846 million and net profit after tax at $2.269 million.

That is a net profit  33.14%, an extraordinary result.

Now, while most of these publications are not sold in newsagencies, the report does indicate the value that can be achieve from a niche publication with an efficient distribution network.

4 likes
magazines

Update on our pre-order pitch in the newsagency

Two weeks ago I wrote briefly about a pre-order pitch we are making. What I did not say is that we were primarily pitching online. Well, today, two weeks on, we have banked more than $9,000 in revenue – for stock the will not arrive for another four weeks.

What makes the experience even more valuable is knowing in advance of stock arriving what the hot sellers will be, what we can feature knowing it will sell two, three and four times faster than other products in the model line. This is invaluable.

The success I am talking about here is from one store, with a niche product category that is also pitched in majors. What we have done is leverage the opportunity in a more flexible way that you won’t see in the majors as operationally it is too challenging for them.

Our spend on advertising so far  – $0.00. We have leveraged an email database that we have built up of people interested in this product category as well as a specialty Facebook page created for the category – again, without spending anything on advertising.

My core point is that success is out there for the taking, not too far away from our shingle, as long as we are opportunistic, back ourselves and are creative at reaching possible shoppers.

What we are doing is not that unique, it is certainly not the first time preorders have been offered in this niche. What is different is that wee started planning a year out, building the email database, growing the social media community and creating a backend engagement approach that enables us to make the most of the pre-sell opportunity.

The reality is that we build an infrastructure like a big business would build, but on a small small business budget of $0 spend.

Retail has fundamentally changed as has businesses under the newsagency shingle as well as suppliers who supply the channel. Further, change is far from done. This is why we have to keep innovating, to play a good game on a moving pitch in rough weather.

It is at the fringes where we have opportunities to make good money.

6 likes
Newsagency management
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